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Political Fragmentation and Coalition Alignment effects: Evidence from health Transfers to Italian Regions

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Listed:
  • Monica Auteri

    (University of Roma Tre)

  • Alessandro Cattel

    (University of Roma Tre)

Abstract

Do government parties positively discriminate in favor of swing or aligned sub-national units while allocating public resources? This paper integrates these two strands of the literature and makes a new contribution by incorporating the insightful perspective of the political fragmentation approach. Using a dataset of Italian regions between 2001 and 2011 constructed from primary sources and a new index of fractionalization, based on Golosov (Party Politics 16(2):171–192), we empirically find that it is the fragmentation of the aligned recipient government that affects the final amount of resources, rather than the alignment itself. Quasi-formula-based grants do not remove the arbitrariness that allows for politically motivated targeting.

Suggested Citation

  • Monica Auteri & Alessandro Cattel, 2023. "Political Fragmentation and Coalition Alignment effects: Evidence from health Transfers to Italian Regions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 1181-1216, November.
    • Handle: RePEc:spr:italej:v:9:y:2023:i:3:d:10.1007_s40797-022-00205-3
    DOI: 10.1007/s40797-022-00205-3
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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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